Scotiabank’s financial and employment practices fail to address Canada’s rapidly evolving demographics and legal
obligations for equitable employment and financial service access. Statistics Canada forecasts that by 2041, two in five
Canadians will belong to a racially minoritized group,1 with Indigenous populations growing at nearly twice the rate of
non-Indigenous Canadians.2 Scotiabank acknowledges discrimination as posing a threat “to the future of thriving, healthy
societies, organizations and economies.”3 Scotiabank’s Human Rights Statement also recognizes the risks and opportunities
arising from the impacts associated with the Bank’s lending and asset management practices, the rights of Indigenous
Peoples, workplace and customer discrimination.4Yet, Scotiabank’s efforts to identify and address structural discrimination risks and develop competitive, inclusive financial
products and services remain inadequate in comparison to efforts undertaken by other Canadian banks, namely BMO, RBC,
National Bank, and CIBC – all of whom are in the process of conducting racial equity audits.For instance, Scotiabank’s Truth and Reconciliation Action Plan (“T-RAP”) “acknowledge[s] the barriers the financial system has
created for Indigenous Peoples”5 but fails to include any commitments related to its investment activities. Shareholders have
limited insight on Scotiabank’s efforts to advance Indigenous reconciliation in its investment activities. In contrast, peer banks RBC6
and BMO7 have guidelines on Indigenous rights and some reference to UNDRIP in their responsible investment considerations.
While Scotiabank’s Human Rights Statement identifies lending practices and Indigenous rights as priorities, Scotiabank’s T-RAP
postpones action on financial product gaps for Indigenous clients until 2028.8 This delay runs counter to pressing appeals from
Indigenous organizations who continue to highlight systemic discrimination and restricted access to capital in the financial sector
as an enduring obstacle to economic reconciliation.9,10,11
Scotiabank’s efforts to address lack of access to credit and capital for other racially minoritized groups, such as its $100 million
Black-led Business Financing Program,12 have insufficient disclosures on progress, preventing shareholders from assessing the
merit and effectiveness of these products.
A racial equity audit of Scotiabank’s business and employment practices, in line with existing best practices, would enhance
Scotiabank’s capacity to identify, address, mitigate and prevent legal, regulatory, and reputational risks associated with systemic
discrimination. It would also enhance Scotiabank’s market competitiveness by enabling it to create more inclusive financial
products to meet a rapidly diversifying customer base, thereby positioning Scotiabank to deliver long-term value to shareholders.